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Assessing Cost Recovery

A New Comparative Framework in Line with WFD Article 9

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Britta Ammermüller

This study proposes a comparative accounting framework for assessing cost recovery of water supply and sewerage services for households and agriculture in line with the requirements of Article 9 of the EU Water Framework Directive (WFD). It provides an integrative analysis of the partly contradictory objectives of Article 9 and the Directive’s approach to cost recovery. The book defines cost categories and accounting guidelines in line with the specific requirements of WFD Article 9. On this basis, an integrative framework for analysing different financing schemes for water services provision and their compliance with the objectives of Article 9 is developed, along with a pragmatic approach for the incorporation of environmental and resource costs in the overall cost recovery analysis.

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4 Illustrative cases: testing the methodological framework 231

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231 4 Illustrative cases: testing the methodological framework “Although the right information may not be available today, it is important to start the analysis and develop it in iterations. Thus, as important as the results of the analysis for the different steps is the assessment of the most significant information gaps and the development of activities aimed at filling these gaps.” CIS (2003a) The following chapter contains illustrative cases, which put key steps of the methodological framework presented in Chapter 3 to an empirical test. The illustration cases allow for detecting difficulties in applying the methodology and provide first ‘lessons learned’. The main objective of this chapter is to inves- tigate whether the proposed methodology is pragmatic and applicable to dif- ferent national and river basin (district) settings. Moreover, it sets the basis for the evaluative and concluding Chapter 5. 4.1 Aim and scope of the illustration cases In the following chapter, selected and well-framed illustration cases are con- ducted for testing key steps of the methodological approach. They focus on those aspects of the methodological framework that are deemed most prob- lematic or where insights are considered most valuable for assessing and improving the applicability of the methodology. While the empirical illustrations form an integral part of this study, it should be noted that the study focuses on delivering new insights by developing an appropriate methodological frame- work and not on conducting an analysis of cost-recovery for selected river basin districts. Hence, the illustration cases are only considered as...

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